> In short, manage contractors like employees .. Actually you have to be very careful about that in the US. In particular if you control how the work is done

> In short, manage contractors like employees .. Actually you have to be very careful about that in the US. In particular if you control how the work is done then they are legally an employee. All sorts of nasty things can happen. http://www.irs.gov/businesses/small/article/0,,id=99921,00.html http://www.irs.gov/businesses/small/article/0,,id=99921,00.h... > ... they are much easier to fire ... This always amused me. My contracts always say I can be terminated at a moment's notice and without reason. But I'm in an at-will state and the employment agreements and state law have exactly the same provision. Despite that most companies treat employee termination far nicer than law allows. http://en.wikipedia.org/wiki/At-will_employment http://en.wikipedia.org/wiki/At-will_employment > ... they are generally cheaper in the long run Also more productive. As a contractor I don't have to get involved in corporate politics, can avoid many meetings and can focus on the work at hand. It is also simpler to deal with me - pay the amount on the invoice. I deal with my own taxes, healthcare, benefits etc. I also have a reputation to maintain so I can't be an underperformer.